Styron increases PS prices in Europe

MOSCOW (MRC) -- Styron, the global materials company and manufacturer of plastics, latex and rubber, and its affiliate companies in Europe has announced price increases for all polystyrene (PS) grades, reported the company on its site.

Effective immediately, or as existing contract terms allow, the November contract and spot prices for the products listed below will increase as follows:

- STYRON general purpose polystyrene grades (GPPS), STYRON and STYRON A-TECH high impact polystyrene grades (HIPS) - each by EUR10 per metric tonne;
- the prices for MAGNUM ABS resins and TYRIL SAN resins will roll over from October.

As MRC informed previously, Styron has announced price increases for all PS and copolymer grades in October 2014. The October contract and spot prices for the products listed below were increased as follows:

- STYRON general purpose polystyrene grades (GPPS), STYRON and STYRON A-TECH high impact polystyrene grades (HIPS) - by EUR20/tonne;
- MAGNUM ABS resins - by EUR30/tonne;
- TYRIL SAN resins - by EUR30/tonne.

The price increase responds to the rising costs of raw materials associated with the manufacturing of polystyrene and copolymers grades in Europe.

Styron is a leading global materials company and manufacturer of plastics, latex and rubber, dedicated to collaborating with customers to deliver innovative and sustainable solutions. StyronпїЅs technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Styron had approximately USD5.3 billion in revenue in 2013, with 19 manufacturing sites around the world.
MRC

MOSCOW (MRC) -- Negotiations on prices of European polyvinyl chloride (PVC) to be shipped in November to the CIS markets began This week. European producers were forced to reduce PVC prices, following a major cut in ethylene prices, according to ICIS-MRC Price report.

The November ethylene contract price in Europe was agreed by EUR90/tonne lower from October. Such a reduction in the price of one of feedstocks leads to a decrease of EUR45/tonne in PVC production costs. However, European producers said they would not reduce their export PVC prices proportionally.

Negotiations on November shipments of suspension PVC (SPVC) to the CIS countries began this week. Deals have been negotiated in the range of EUR730-780/tonne FCA, down by an average of EUR20-30/tonne from September.

Despite reductions in export PVC prices in Europe, many market participants reported lower purchasing on the back of seasonal factors.
MRC

MOSCOW (MRC) -- BASF, the world’s leading chemical company, and TODA KOGYO Corp., an industry leader in the development and manufacture of cathode materials for lithium-ion batteries, have agreed to form a joint venture for cathode active materials (CAM) in Japan, reported BASF in its statement.

Under terms of the agreement, BASF will acquire a 66% ownership stake in the new venture, with TODA KOGYO CORP. holding a 34% ownership stake. BASF and TODA KOGYO will combine their respective CAM businesses, intellectual property and production assets in Japan in the joint venture, which will operate under the trade name BASF TODA Battery Materials, LLC.

Closing of the joint venture agreement and the launch of operations for the newly formed company is expected to take place by the end of February 2015.

BASF TODA Battery Materials will focus on R&D, production, marketing and sales of a broad range of cathode materials including Nickel Cobalt Aluminum Oxide (NCA), Lithium Manganese Oxide (LMO) and Nickel Cobalt Manganese (NCM) in Japan. These materials are used in lithium-ion batteries for the automotive, consumer electronics and stationary storage markets.

As MRC wrote before, in July 2014, BASF Shanghai Coatings Co., Ltd. inaugurated its new automotive coatings plant at the Shanghai Chemicail Industry Park in Shanghai, China. The expansion of its automotive coatings production capacity with an investment of around EUR50 million further strengthens BASF’s presence in China and its position as a leading coatings supplier to the automotive industry.

BASF is the world’s leading chemical company. Its portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas. BASF had sales of about EUR74 billion in 2013 and over 112,000 employees as of the end of the year.

TODA KOGYO Corp. is specialized in the Wet Synthesis Technology of metal oxide, and manufacturing cathode materials for lithium-ion batteries, coloring materials including pigments and toners, magnetic powder materials, ferrite materials and other various magnetic materials.
MRC

MOSCOW (MRC) -- Dutch chemical and ingredients company Royal DSM is exploring a sale of some assets to Ineos Group., reproted Hydrocarbonprocessing with reference to people with knowledge of the matter.

DSM, under pressure from activist investor Third Point LLC to break up and focus on more profitable nutrition offerings, is in advanced talks with Ineos over exiting caprolactam and acrylonitrile operations, said the people, who asked not to be identified because the matter is private.

The assets, which are used for synthetic fibers in clothing, carpets and car parts, generate annual sales of about EUR1.7 billion (USD2.1 billion), according to estimates by Barclays.

A potential deal is still being structured, the people said. The companies may form a venture that would allow DSM to exit the chemical operations while securing supplies to feed its remaining performance materials sites, they said. An agreement is possible by year-end, they said.

A spokesman for DSM declined to comment, while Ineos’ spokespeople couldn't immediately be reached.

Third Point, the hedge fund led by Daniel Loeb, advocates a break up of DSM that it says would unlock value trapped in a diverse chemical company making plastics for car parts and supplements for baby food. An Oct. 1 regulatory filing showed Third Point has accumulated a stake in DSM of more than 3%.

For Ineos, which turns over USD47 billion a year, a deal with DSM would enhance its leading position in acrylonitrile, used in the production of synthetic fibers for clothing and carpets to car parts and phones. Higher prices for raw materials such as benzene and oversupply in the caprolactam market have depressed margins and heightened the importance of integration and economies of scale.

DSM produces caprolactam in China, Europe and North America, as a feedstock for its own polymer plants as well as supplying externally. Merchant sales of caprolactam are worth about EUR1.2 billion/year to DSM, with acrylonitrile accounting for a further EUR500 million in revenue, according to a report by Barclays.

As MRC wrote before, in October 2014, Ineos Industries Holdings Ltd agreed to acquire the Combined Heat and Power Plant (CHP) from Fortum, that serves the Grangemouth site, for GBP54 million. Grangemouth CHP, currently owned and operated by Fortum, is a natural gas-fired combined heat and power (CHP) plant located at the Grangemouth petrochemical site and refinery in Scotland.

Ineos Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.

Royal DSM is a global science-based company active in health, nutrition and materials. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials.
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